If you have tax debt resulting in a lien on your home, the accruing penalties and interest may be causing additional stress. Since tax debt can quickly escalate over time, it’s crucial to take immediate action to protect any remaining equity and lift the burden from your shoulders. It’s important not to try to conceal the issue or list your home without first creating a plan to free yourself from your lienholders’ involvement, as this could cause further delays and expenses.
Selling your home may provide a solution for resolving your issues, but the process is already stressful, and the presence of a lien or tax problems will only complicate matters further. It’s essential to clear any outstanding debts to sell the property, and this must be done in a particular order based on the status of the lienholder, such as primary or secondary mortgages, with tax liens always being primary. In more complex cases, it’s advisable to seek the assistance of a professional tax advisor or attorney.
After you have satisfied the lien, it is essential to obtain documentation that confirms you have paid off the debt, such as a recorded lien release, lien discharge, or satisfaction of mortgage. In the event that you discover the lien is still present on the property despite having proof of tax payment, you will need to file a request for a certificate of release before the closing can occur. If you are interested in learning more about how to navigate this situation, continue reading as we delve into the process for handling liens and tax issues when selling your house in New England.
Expiring
It’s important to note that ignoring the problem and hoping it will go away is not a viable solution. If you’ve been living with the lien for nearly ten years and the amount owed is minimal, the IRS may allow the debt to expire. However, it’s essential to exercise caution when considering this approach, as there is only a slight chance that the debt will disappear on its own. In most cases, the government will file a lawsuit to collect the outstanding debt. It’s crucial to take proactive steps to address the issue to avoid further complications and potential legal action.
Pay It Off
Without a doubt, paying off the debt is the most straightforward and efficient approach to addressing liens and tax issues when selling your house in New England, provided you have the necessary funds available.
Negotiate
In cases where the total debt exceeds the available equity, negotiating a settlement may be a viable option for addressing liens and tax problems when selling your house in New England. It’s crucial to involve an attorney in this process to ensure that your rights and interests are protected throughout the negotiation process.
Dispute
Disputing the debt is a potential avenue for addressing liens and tax problems when selling your house in New England, but it’s important to note that if the debt is with the IRS, you must appoint a qualified tax advisor to represent you. This approach can be complicated and requires expert knowledge, so it’s essential to have a qualified professional on your side to navigate the process successfully.
Buyer
While it can be a complex solution, seeking out a cash buyer to purchase the property is another potential way to address liens and tax problems when selling your house in New England, if legal circumstances allow for this option. However, it’s important to understand that if the buyer intends to sell the home in the future, they will be responsible for paying off any outstanding debts. It’s crucial to approach this option with caution and seek legal advice to ensure that the transaction is conducted legally and fairly for all parties involved.
Old Harbor Properties
Your best option is to sell for cash to a direct buyer from Old Harbor Properties and work the payment from your proceeds into the closing. Then, talk to the experts at Old Harbor Properties who can help. We’ll relieve you of the burden of liens and tax problems when selling your house New England with the quick, easy and transparent process at Old Harbor Properties. Furthermore, the direct buyers at Old Harbor Properties never charge commissions and offer guaranteed closings, working with you for the most convenient date, usually within a matter of days. In addition, you’ll have the numbers in your hand to compare our offer against the profits you’d realize with a traditional listing, so you can decide what the best option is for yourself. Call Old Harbor Properties at (781) 549-0271.